Hong Kong Inmedia, an online media outlet founded in 2004, was cleared of tax evasion after a year-long investigation by the Inland Revenue Department (IRD) that began in November 2023 [1]. Despite the clearance, the outlet paid about HK$40,000 (US$5,106) in administrative and accounting costs attributable to the review [1].
The Hong Kong Journalists Association (HKJA), which represents media professionals, criticized the IRD’s audit practices. HKJA chairwoman Selina Cheng Kar-yue said the process “imposes undue stress and unfair punishment on those media, even if they were found to have not evaded any taxes.” Cheng noted that Hong Kong Inmedia was found at zero fault but incurred significant expenses and spent many hours managing paperwork and accounting for the review [1].
The HKJA itself has also been under scrutiny since the IRD review began in November 2023 and was required to prepay HK$730,000 in taxes pending the outcome of its case [1].
Altogether, eight media outlets and 20 journalists were reviewed by the IRD. At least two other media organizations had their cases closed without tax faults identified by the department [1].
Hong Kong Inmedia’s case closure marks the latest step in an ongoing IRD review of media organizations. The review’s effects on costs and operational strain have drawn concern from journalistic groups about the burden placed on media outlets found to be compliant [1].
